Brad Garlinghouse and Chris Larsen, two of the top executives at Ripple have asked the court to cancel the case filed against them by the Security and Exchange Commission (SEC) officials as they claimed the allegations against them are baseless.
While responding to a complaint filed by the SEC against their firm, the two officials emphasized that digital assets do not comply with the definition of a security as stated by 2 primary statutes under the law.
SEC Aims To Control The Digital Assets Market
The two Ripple representatives, Larsen and Garlinghouse, will not allow SEC to have any upper hand concerning the case as they have pleaded with the court in charge to vindicate them by dismissing the allegation leveled against them.
Furthermore, in his statement, Garlinhouse shared that the Securities and Commission officials are looking for after-the-fact litigation. He added that the government body has failed to use guided rules and regulations to solve the case at hand, instead they have decided to signal a regulatory message to the crypto market.
He alleged that the commission is aiming at creating a new regulatory framework with which it would use in putting the crypto market under control in the country. He concluded that the SEC has gone too far by making this move.
The response they gave expatiate on how the SEC wants to throw its weight on a newly growing technology as it seeks to control it without giving any lucid guidelines to investors. It also argued that the commission is merely wanting to win the court support on the case without providing any rule that backs its claim up.
He added that the commission is abusing their individual rights by making a new protocol or policy at their expense.
Ripple Emphasize That XRP Is Not A Security
Ripple is stuck to its gun as it keeps emphasizing that XRP is never a security. The two executives claim to be due observants of the Securities Act, Section 5 as their token is neither a security nor an investment contract.
In addition, they claimed that none of their accused XRP sales or offers or distributions are investment deals. They also buttressed that all XRP sales and offers are totally decentralized as none required anyone to register before acquiring it.